China is the world’s largest consumer of DME with the highest production capacity around the globe. The country is at the front to commercialize the use of DME for blending it with LPG, so as to reduce its reliance on LPG imports. DME consumption in the country is estimated to grow at a CAGR of around 10.6% from 2013 to 2023. The country has intensified its efforts in recent times, so as to reduce its LPG imports, and hence, minimize hard cash expenditure on such imports. After 2018, the growth in expected to be driven by transportation fuel segment, which may grow at a CAGR of over 20.0% after 2018. The country has already started focusing on replacing diesel with DME, which may further reduce emission levels in China.

DME emerged as a reliable alternate source for energy deficit countries. Blending DME with LPG has shown a bright way to the countries reducing the consumption of LPG. Currently, a high share of DME is consumed for blending with LPG and the demand by LPG segment is further expected to grow at a CAGR of more than 10.0% from 2013 to 2023. After China, countries including South Korea, Indonesia, and Egypt are putting vigorous efforts for developing a strong base of DME market, with a target of reducing LPG imports. DME is also considered as a dependable replacement for diesel, though it requires some modification in engine, but it is still preferred over the other available alternatives due to its clean burning properties. Volvo AB, as a part of BioDME consortium, has developed some trucks in Sweden that are running on bio based DME. Similar, efforts are also being taken in China and Japan. Majorly driven by intense efforts of these countries, DME consumption as a diesel substitute is expected to grow at the highest CAGR from 2013 to 2018, as well as from 2013 to 2023. Countries in Western Europe, like Germany and The Netherlands, consume DME as an aerosol propellant or as a chemical feedstock.

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